Expeditors International of Washington Inc. (EXPD) expects to
miss Wall Street's first-quarter estimates as shipping volumes
declined amid a shaky global economy.
The logistics company forecast first-quarter earnings between 35
cents and 37 cents a share, while analysts surveyed by Thomson
Reuters expected 42 cents.
The company said it will become more aggressive in cost
containment and more focused on expanding its customer base as its
preliminary data points to a trend of fewer shipments by existing
customers, particularly airfreight customers.
A number of freight carriers--such as FedEx Corp. (FDX) and
United Parcel Service Inc. (UPS)--have reduced capacity or shifted
aircraft to other markets because demand from Asia has softened as
companies run down their inventories.
Expeditors, whose services include air and ocean freight
forwarding, customs clearance and marine insurance, reported in
February its fourth-quarter earnings fell 3.8% as lower airfreight
volume contributed to a 5.1% revenue decline.
Shares closed Thursday at $45.74 and were inactive premarket.
The stock is up 12% so far this year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com